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ECIA survey on impact of COVID-19 on electronics industry shows shift toward “no” or “minimal”

March 25, 2020 By Aimee Kalnoskas

ecia logoWith the spread of the Coronavirus COVID-19 there is a need to provide visibility on how this crisis is impacting the electronic components industry and the supply chain. In order to provide this important visibility, ECIA has been conducting surveys of member manufacturing and distributor companies to gain an understanding of this fluid situation. ECIA published the results of the first survey which ended February 7, 2020 in a report released on February 11th. This was followed by two more surveys that concluded February 21, 2020 and March 6, 2020. This most recent survey was conducted between Monday, March 16th and Friday, March 20th. Despite the exponential growth of Coronavirus around the world, this survey shows a major jump in positive expectations regarding the impact on the ability of companies to supply customers on time. There is a large shift toward “no impact” and “minimal impact” in all three component segments with the largest share of responses falling in these categories.

In addition, the largest group now expects no disruption in the supply chain. However, this is not consistent with inputs on questions regarding concerns about impact at the different stages of the supply chain. As seen in previous surveys, a large share of respondents continues to struggle with adequate visibility on the supply chain and are unable to quantify the impact of this crisis.

As seen in previous surveys, a large share of respondents continue to struggle with adequate visibility on the supply chain and are unable to quantify the impact of this crisis. Semiconductor participants appear to have the greatest challenge as more than 60% of respondents are still unable to assess the impact level of the Coronavirus on their ability to supply customers. At this point, of those companies able to gauge the influence of the Coronavirus on their supply chains, most expect no increase or a “less than one-week” impact on lead times.  Again, a significant improvement from prior surveys.

“As the Coronavirus / COVID-19 transforms from a China-centric challenge to a global pandemic, the impact on the world electronics supply chains and markets has shifted,” explained Dale Ford, ECIA Chief Analyst. “The results of the latest ECIA survey show that depressed end-market demand due to widening quarantine orders in major economies is significantly reducing pressure on the electronics components supply chain.  Participants in the electronics components industry are now faced with the challenge of balancing the supply / demand environment in a world plagued with uncertainty and fear.”

A synopsis of the most recent survey is available on the ECIA Coronavirus Resources page. Members should log into the site to gain access to detailed survey results.

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Filed Under: Covid-19, Industry News Tagged With: ecia

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